hi
Warm Greetings!!!!
I am Venkat, having a doubt that income tax is calculated on Gross Salary or Net pay?
And
If an employee gets increment in the month of Nov 2013 and his salary has is increased to 20k gross per month from 14k gross, he is liable to get income tax deduction? if his take home is 18.5k per month.
Note: The employee doesn\'t get any other monitory benefits other than Salary and Bonus.
Kindly help in this.
Regards
Venkat
From India, Bangalore
Warm Greetings!!!!
I am Venkat, having a doubt that income tax is calculated on Gross Salary or Net pay?
And
If an employee gets increment in the month of Nov 2013 and his salary has is increased to 20k gross per month from 14k gross, he is liable to get income tax deduction? if his take home is 18.5k per month.
Note: The employee doesn\'t get any other monitory benefits other than Salary and Bonus.
Kindly help in this.
Regards
Venkat
From India, Bangalore
604
HI,
Income tax is calculated on the Gross salary which you are getting less allowances which are exempted as per Income Tax Act, and then on the said salary will be considered for the whole financial year and then tax will be deducted on the said salary.
If you get any type of increment then the same will be considered accordingly and your Income tax will be deducted accordingly.
Hope the same will be clear now.
From India, Ahmadabad
Income tax is calculated on the Gross salary which you are getting less allowances which are exempted as per Income Tax Act, and then on the said salary will be considered for the whole financial year and then tax will be deducted on the said salary.
If you get any type of increment then the same will be considered accordingly and your Income tax will be deducted accordingly.
Hope the same will be clear now.
From India, Ahmadabad
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Income Tax Calculation 2009-10 - Salaries.xls